THE UPPER MISSISSIPPI- ILLINOIS WATERWAY TRANSPORT SYSTEM A white paper from the Transportation for Illinois Coalition May 2006 OUR WATERWAY SUPER HIGHWAY – THE UPPER MISSISSIPPI-ILLINOIS WATERWAY Transportation for Illinois Coalition White Paper Researched & Written by Richard Adorjan, Former Director of the Office of Public Affairs for the Illinois Department of Transportation ________________________ CONTENTS Executive Summary . 1 Overview . 4 Economics . 10 Funding Issues . 14 Navigation Issues . 17 Operations & Maintenance . 18 Ecosystem Sustainability . 21 Endnotes . 23 The Transportation for Illinois Coalition is a diverse group of statewide and regional business, orga- nized labor, industry and governmental organizations that has joined together in a united and focused effort to support a strong transportation alliance for Illinois. The coalition takes a comprehensive approach and seeks to speak with one voice for all of Illinois regarding transportation funding needs at both the state and federal levels. The coalition believes that transportation is critical to the economy of Illinois. This comprehensive approach involves all modes of transportation, including rail, air, water, highways and mass transit. Executive Summary Overview Illinois Waterways Issues Funding White Paper: Navigation Issue Operations Executive Summary Economics Ecosystem verage Americans know little about The inland waterways system through the heart this nation’s inland waterway system and of the United States is aging and requires funding A the role it plays in our economy. When for modernization and maintenance to help the U.S. crossing a bridge, they may see a barge below, but maintain its global competitiveness. This is they probably pay little notice to its contents and particularly important for Illinois, which is a major have even less curiosity as to its destination. grain producer. It may become even more important with the expected growth in the coal industry. The size and benefits of the river traffic would probably surprise the majority of citizens. The focus of this paper is on the construction of general improvements for navigation, the operation Each year, some 116 million tons of commodities, and maintenance of the river system, and ecosystem valued at more than $23 billion, travel the 1,118 restoration. miles of Illinois waterways. Nearly one-third is grain from Illinois farm fields, much of which is destined Funding for overseas trade. Coal also makes up a sizeable The funding for maintaining and improving the portion of the shipments, as do aggregates (crushed Illinois waterways is provided through a two step stone, sand and gravel). In 2005, there were 25,230 process. First, there must be an authorization bill barges that made their way through the LaGrange (Water Resources Development Act – WRDA) passed Lock and Dam on the Illinois Waterway. At the by Congress. New major capital projects, such as the Chain of Rocks Lock and Dam on the Mississippi expansion of the locks and dams on the Mississippi River, the count was 58,073 barges. River, must first be approved through the authorization bill. This act, which had been passed Perhaps this lack of visibility to the general popula- roughly every two years from 1986 through 2000, tion is one reason why the infrastructure that sup- is the substantive legislation that also authorizes ports the barge industry – the locks and dams – are funding for operations and maintenance. This is suffering from neglect. While there is public outcry followed up by an annual appropriation bill. about potholes and traffic tie-ups on our roads, there No state funds are involved in capital improvements is no similar protest about problems affecting the for navigation. waterways and the fact that these problems are not being addressed. It has been nearly six years since the last Water Resources Development Act was enacted. As of Executive Summary 1 May 2006, Congress continued to be gridlocked over Environment & Ecology the passage of a WRDA. The Mississippi River is the only river designated by Congress as both a nationally significant transporta- In November 2005, President Bush signed into law tion system and a nationally significant ecosystem. the FY2006 Energy and Water spending bill that According to a 2004 USACE feasibility study, “The provides nearly $5.4 billion in appropriations from Upper Mississippi River System Flyway is used by both the Inland Waterways Trust Fund and the more than 40 percent of the migratory waterfowl General Fund for the U.S. Army Corps of Engineers traversing the U.S. The river system also supports (USACE) civil works. The FY06 appropriation is migratory fish that move from the ocean to the nearly identical to the FY05 appropriation. headwaters and riverine species that have been However, when adjusted for inflation, the purchasing documented to move great distances through the power for maintaining and operating the navigation Mississippi River Drainage.” system is significantly reduced. The protection of this invaluable resource must be a The amount contained in the appropriation for the top priority in planning for the future so that com- Illinois Waterway, $22.2 million, represents a major merce and the habitats of fish, wildlife and plants can reduction from the FY05 appropriation of $32.5 continue to coexist. million, an amount that is considered necessary to maintain service comparable to previous years. Taxes Imposed Towboat operators, shippers and other commercial The extensive damage caused by Hurricane Katrina users help pay for lock and dam construction and for further strains federal budgeting. As of September major rehabilitation of the waterway system through 2005, Congress had allocated more than $60 billion a 20-cent-per-gallon fuel tax. These taxes are for recovery efforts. Of this, approximately $400 deposited into the Inland Waterways Trust Fund, million was provided to the USACE for flood control which was established by Congress in 1986. It is and recovery operations. It is clear that additional used to fund 50 percent of the cost of inland money will be needed to address the Katrina navigation projects each year. The remaining project problems. costs are funded though expenditures from the General Fund of the U.S. Treasury. Waterway users also are currently paying a 2.3 cents-per-gallon Deficit Reduction Fuel Tax. The U.S. has nearly 12,000 miles of commercially active There are concerns that the waterway trust fund is inland and intracoastal water- not being fully utilized to underwrite the cost of modernizing locks and dams on the inland waterways ways. Illinois has 1,118 miles and that the trust fund, which is earmarked for major of navigable waterways border- capital projects, might be diverted to finance ing or passing through the state. operating costs instead. 2 Executive Summary In Summary ❑ Supports the construction of the 1,200-foot The nation simply isn’t making the necessary locks and accompanying improvements in order investment in modernizing the waterways system. to keep the nation’s breadbasket production and Timely maintenance is being deferred. There is an shipment of grains competitive in the global estimated $500 million operations and maintenance market. The Upper Mississippi River inland backlog on the Upper Mississippi River basin. navigation system is critical to the cost-effective transport of raw goods and commodities The problems of underfunding are only made worse throughout the Midwest. by the delays in agreeing on a new WRDA that would authorize significant navigational ❑ Supports a holistic approach that recognizes improvements and environmental improvements for both nature and navigation. The inland ecological sustainability. Addressing the problems of waterway is a valuable economic resource for the this important national resource requires immediate Midwest and the nation and a balance should be attention. Not only are the nation’s leaders not struck between the need for economic growth providing the vision for the future of this system, and for environmental sustainability. they also are not funding adequate resources to maintain the current facilities. ❑ Supports increased funding for Operations and Maintenance for the Upper Mississippi and The Transportation for Illinois Coalition: Illinois Waterway system of locks. TFIC also believes that because of the long-term nature of ❑ Supports the concept that user fees, which are making infrastructure improvements, work deposited into the Inland Waterways Trust Fund, should begin immediately with preparation of should be spent for the purposes for which they Plans and Specifications for rehabilitation of were collected – the modernization and certain locks on the Illinois River. These plans improvement of the inland waterway. In are necessary before actual construction can be addition, TFIC believes that the capital undertaken on locks. improvement program should be structured similarly to the highway program (that provides a five-year source of funding) to ensure the delivery of waterway capital projects. Waterway infrastructure projects, such as the new locks on Each year, some 116 million tons the Upper Mississippi River, require a long lead of commodities, valued at more time for planning and the completion of design than $23 billion, travel the 1,118 plans. A stable multi-year funding source would miles of Illinois waterways. provide an orderly process for implementing waterway infrastructure improvements. Executive Summary 3 Executive Summary Overview